BPAM launches the all universe bond index

By TMR / graphic by MZUKRI

Bond Pricing Agency Malaysia Sdn Bhd (BPAM), a registered bond pricing agency accredited by Securities Commission of Malaysia,announced its newest index addition, the BPAM All Universe Bond Index (Index). 

In a statement today BPAM said the Index comprises Malaysian Ringgit-denominated long-term rated and unrated bonds and sukuk with issuer pool consisting of Government of Malaysia, near governments and the corporate sectors.

As of 30 June 2021, the unrated bond market stood at MYR 122.23 billion out of the total market size of MYR 1,697.91 billion.

“The BPAM All Universe Bond Index is the first index to capture both the rated and unrated Ringgit bond market in Malaysia as a whole.

Spurred by demands and providing investment depth to local investors, the unrated bond market has steadily grown in tandem with its rated counterpart. 

“Thus, the Index gives a true representation of the overall performance of the Malaysian bond market,” said BPAM’s CEO Meor Amri Meor Ayob.

The BPAM All Universe Bond Index is backfilled to 2 January 2015. 

As of 30 June 2021, the Index monitors a total of 1,556 rated and unrated bonds with market capitalization of MYR 1,491.96 billion. 

“BPAM is constantly expanding the coverage of our index series. In addition to 5 other index series with over 500 sub-indices, we also offer index customization based on client’s requirements. This latest offering of the BPAM All Universe Bond Index was built as granular as possible to serve as a benchmark against overall bond portfolio performance,” said Noor Bazlina Sharifmuddin, Head of Financial Engineering and Research of BPAM. 

BPAM’s range of index series includes the Refinitiv BPAM Bond and Sukuk Indices, BPAM ESG Bond Index, BPAM Unrated Bond Index and ASEAN3 Government Bond Index. 

BPAM is also the calculation agent for Refinitiv’s Global Sukuk Index.  

“As the leading reference source for the Malaysian bond and sukuk market, our goal is to continuously provide value through verifiable data and market relevant services. This newest index addition demonstrates our commitment in offering innovative solutions to meet financial market demands.” added Meor. 

The BPAM All Universe Bond Index is now available to all BPAM subscribers via BPAM’s client distribution platform, BondStream and soon to be released to the retail market via E-BPAM, the e-commerce gateway to BPAM’s vast bond database.